diff --git a/Documentation/gitrepository-layout.txt b/Documentation/gitrepository-layout.txt
index 2b30a921c..7173b3883 100644
--- a/Documentation/gitrepository-layout.txt
+++ b/Documentation/gitrepository-layout.txt
@@ -248,9 +248,7 @@ commondir::
 	incomplete without the repository pointed by "commondir".
 
 modules::
-	Contains the git-repositories of the submodules. This
-	directory is ignored if $GIT_COMMON_DIR is set and
-	"$GIT_COMMON_DIR/modules" will be used instead.
+	Contains the git-repositories of the submodules.
 
 worktrees::
 	Contains worktree specific information of linked
diff --git a/path.c b/path.c
index 35d498e9b..a5c51a33b 100644
--- a/path.c
+++ b/path.c
@@ -92,7 +92,7 @@ static void replace_dir(struct strbuf *buf, int len, const char *newdir)
 }
 
 static const char *common_list[] = {
-	"/branches", "/hooks", "/info", "!/logs", "/lost-found", "/modules",
+	"/branches", "/hooks", "/info", "!/logs", "/lost-found",
 	"/objects", "/refs", "/remotes", "/worktrees", "/rr-cache", "/svn",
 	"config", "!gc.pid", "packed-refs", "shallow",
 	NULL
diff --git a/t/t7410-submodule-checkout-to.sh b/t/t7410-submodule-checkout-to.sh
new file mode 100755
index 000000000..8f30aed6c
--- /dev/null
+++ b/t/t7410-submodule-checkout-to.sh
@@ -0,0 +1,50 @@
+#!/bin/sh
+
+test_description='Combination of submodules and multiple workdirs'
+
+. ./test-lib.sh
+
+base_path=$(pwd -P)
+
+test_expect_success 'setup: make origin' \
+    'mkdir -p origin/sub && ( cd origin/sub && git init &&
+	echo file1 >file1 &&
+	git add file1 &&
+	git commit -m file1 ) &&
+    mkdir -p origin/main && ( cd origin/main && git init &&
+	git submodule add ../sub &&
+	git commit -m "add sub" ) &&
+    ( cd origin/sub &&
+	echo file1updated >file1 &&
+	git add file1 &&
+	git commit -m "file1 updated" ) &&
+    ( cd origin/main/sub && git pull ) &&
+    ( cd origin/main &&
+	git add sub &&
+	git commit -m "sub updated" )'
+
+test_expect_success 'setup: clone' \
+    'mkdir clone && ( cd clone &&
+	git clone --recursive "$base_path/origin/main")'
+
+rev1_hash_main=$(git --git-dir=origin/main/.git show --pretty=format:%h -q "HEAD~1")
+rev1_hash_sub=$(git --git-dir=origin/sub/.git show --pretty=format:%h -q "HEAD~1")
+
+test_expect_success 'checkout main' \
+    'mkdir default_checkout &&
+    (cd clone/main &&
+	git checkout --to "$base_path/default_checkout/main" "$rev1_hash_main")'
+
+test_expect_failure 'can see submodule diffs just after checkout' \
+    '(cd default_checkout/main && git diff --submodule master"^!" | grep "file1 updated")'
+
+test_expect_success 'checkout main and initialize independed clones' \
+    'mkdir fully_cloned_submodule &&
+    (cd clone/main &&
+	git checkout --to "$base_path/fully_cloned_submodule/main" "$rev1_hash_main") &&
+    (cd fully_cloned_submodule/main && git submodule update)'
+
+test_expect_success 'can see submodule diffs after independed cloning' \
+    '(cd fully_cloned_submodule/main && git diff --submodule master"^!" | grep "file1 updated")'
+
+test_done